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Indian Officials To Visit Russia To Negotiate Gorshkov Deal

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The ongoing tussle between India and Russia on the issue of Admiral Gorshkov has culminated into yet another proposed visit by Indian Government officials to Moscow for price negotiations.

The Admiral Gorshkov, now renamed ‘INS Vikramaditya’, was signed for procurement in 2004 for the original price of $1.5 billion and scheduled to be delivered in 2008. However, the delivery is now expected to take place in 2012 and the Russians are demanding an extra $2 billion.

The 44,000 tonne Admiral Gorshkov was meant to replace the ageing INS Viraat which is the sole aircraft carrier with the Indian Navy. Since India has already made an advance payment, it is left with no option but to re-negotiate the deal. Cost estimates and reports concerning the Gorshkov’s final total now hover close to $2 billion, out of which $400-500 million has reportedly already been paid. Russia is now demanding the money it has already put on the additional modernization work on the vessel.

As for India, it is building another aircraft carrier, but that 37,000 ton vessel won’t be ready until 2015.

India’s sole aircraft carrier, the 29,000 tonne INS Viraat, is currently spending 16 months in a shipyard getting maintenance and upgrades, leaving India with no carrier capability. The timely arrival of the refurbished Russian carrier has not occurred and hence, the INS Viraat will need to continue with the Navy. Sources said that if it gets its engine and hull refurbished and its electronics upgraded, its lifetime can be increased.

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